Governor Proposes Solution To Long-Term Employee Costs

The Snyder administration and lawmakers will continue informal talks on long-term employee retirement costs. The administration hinted that they wanted the Legislature to review HB 4701 and HB 4702 in June.

HB 4701 and HB 4702 would both make significant changes to the retirement health care benefits offered to state workers, as well as increase the amount of employee pension contributions. Many employees were hoping that the section of the bill requiring the state to refund the 3 percent of wages they have paid toward future health care costs was implemented, though many unionized workers have shown opposition to the rest of the bill, some bringing their objections to court. The verdict in that case is still forthcoming.

The Snyder administration has proposed providing a lump-sum payment to workers under the defined contribution plan, depending on how long they have worked for the state, but would otherwise stop offering retirement health care insurance to employees. The administration is seeking $145 million in total state employee concessions under the 2011-12 budget. It is unclear if the House Appropriations Committee will consider the bills yet this summer.

posted by PAA Online , Friday, July 15, 2011 10:57 AM
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